Forms of Organizations

Line Organization
Line organization is the most oldest and
simplest method of administrative
organization.
According to this type of organization, the
authority flows from top to bottom in a
concern.
The line of command is carried out from top
to bottom.

Features of Line Organization

It is the most simplest form of organization.
Line of authority flows from top to bottom.
Unified control by the line officers can be
maintained since they can independently take
decisions in their areas and spheres.
This kind of organization always helps in bringing
efficiency in communication and bringing
stability to a concern.

Line organization
Merits of Line Organization

Simplest
Unity of Command
Better discipline.
Fixed responsibility
Flexibility
Prompt decision

Demerits of Line Organization

Over reliance
Lack of specialization
Inadequate communication
Lack of Co-ordination
Authority leadership

Functional organization
It has been divided to put the specialists in the top
position throughout the enterprise.
This is an organization in which we can define as a
system in which functional department are created
to deal with the problems of business at various
levels.
Functional authority remains confined to functional
guidance to different departments.
This helps in maintaining quality and uniformity of
performance of different functions throughout the
enterprise

Advantages
Is logical and reflection of functions
Follows principle of occupation specialisation
Simplifies training
Better control as the manger in charge of each functional
department is usually an specialist.

Disadvantages
Overspecialisation and narrow viewpoints of key
personnel can limit the organisation growth.
Reduced coordination between functions.
Conflicts between different functions could be
detrimental for the organisation as a whole.
Difficult for general managers to coordinate different
departments.

Line and Staff Organization

It is a combination of line and functional structures.
In this organization a structure, the authority flows
in a vertical line and get the help of staff specialist
who are in advisory. When the line executives need
advice, information about any specific area, these
staff specialists are consulted.

For example Chief accountant has command
authority over accountants and clerks in the
accounts departments but he has only advisory
relationship with other departments like production
or sales
Advantages
Line managers are provided by expert advice by these
specialists.
Staff managers provide specialist advice which can
improve quality of decisions in various departments.
Disadvantages
Line managers and staff managers might have conflicts
on particular issues.
Line and staff managers might not be clear as to what
the actual area of operations is and what is expected of
them. Co-ordination may be a problem.
Staff personnel are not accountable for the results and
thus may not take tasks seriously.